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Monday, March 4, 2024

“ADCB Divests 80% Stake in Abu Dhabi Commercial Properties”

Abu Dhabi Commercial Bank (ADCB) has strategically opted to sell an 80% stake in its property management subsidiary, Abu Dhabi Commercial Properties (ADCP), to Nine Yards Plus Holding. The Dh591 million transaction, expected to close by December 2023, aims to unlock significant value for shareholders while aligning with ADCB’s focus on core banking businesses.

Valuation and Gains: ADCP Priced at Dh591 Million, ADCB Anticipates Dh490 Million Gain

The deal values ADCP at Dh591 million, with ADCB anticipating gains of approximately Dh490 million, subject to closing conditions. This move underscores ADCB’s commitment to shareholder value and aligns with its broader strategy for sustained growth.

Post-Transaction Partnership: ADCB to Retain 20% Stake in ADCP

Following the transaction, ADCB will maintain a 20% stake in ADCP, fostering a post-transaction partnership through a long-term relationship agreement. This approach ensures continued collaboration and support for ADCP’s growth trajectory.

Leadership Perspectives: ADCB CEO and EIH’s Group CEO Express Optimism

ADCB’s Group CEO, Ala’a Eraiqat, expresses pride in building ADCP into a prominent property management services provider. EIH’s Group CEO, Ali El Gebely, shares enthusiasm about acquiring a majority stake in ADCP, emphasizing its position as a market leader in property management services in Abu Dhabi.

Strategic Impact on ADCP: Leveraging ADCB’s Strengths, Partnering with Nine Yards Plus Holding

Established in 2006, ADCP manages 51,000 units across 1,900 properties, serving landlords with a separate corporate identity. The company will continue to leverage ADCB’s financial expertise while benefiting from Nine Yards Plus Holding’s real estate acumen and growth trajectory.

Advisory Roles: Barclays Bank, Deloitte, Clifford Chance, Grant Thornton, Alvarez and Marsal, Al Tamimi & Co.

Key advisory roles were played by Barclays Bank, Deloitte, and Clifford Chance in assisting ADCB. Grant Thornton, Alvarez and Marsal, and Al Tamimi & Co. provided critical support to Nine Yards Plus on buy-side due diligence and legal matters.

This strategic move positions ADCB for continued growth in core banking activities while ensuring ADCP’s trajectory aligns with the expertise and vision of Nine Yards Plus Holding.

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